Innovations in Data Center Power and Cooling Solutions

Schneider to demonstrate power and cooling at DCW 2026

In this article for DCNN, Matthew Baynes, Vice President, Secure Power & Data Centres, UK & Ireland at Schneider Electric, details how the company will demonstrate its integrated power, cooling, and digital capabilities at Data Centre World 2026: Building for AI at scale – are you ready? As the global competition for AI leadership intensifies, the UK is stepping up in its mission to become an ‘AI Maker’. As demand increases, so too does the need for the secure, scalable, and sustainable infrastructure to accommodate it. The UK ranks among the world’s top three data centre markets, and the industry sits at the core of the country’s AI ambitions, with the Government’s AI Opportunities Action Plan now designating data centres as critical national infrastructure (CNI). Data Centre World in London is the industry’s largest gathering of professionals and end-users. During the event, as the UK’s energy technology provider, Schneider Electric will explore how we can scale AI infrastructure. The impact of investment and AI Growth Zones As previously mentioned, with the Government’s AI Opportunities Action Plan being backed by investment from big tech, data centres are now considered as critical national infrastructure. This has opened the gates for large-scale innovation, investment, and opportunities. From Stargate UK to Google’s £5 billion commitment to AI infrastructure, announcements by major global technology companies have all strengthened the UK’s leadership position. Exploring the UK’s position in the data centre market, on 4 March at 11:05am, I will discuss the importance of scaling AI responsibly in the UK, prioritising energy efficiency and innovation in data centres. Liquid cooling: Meeting the challenge of density As rack densities soar to support AI workloads, the challenge is no longer whether to adopt liquid cooling, but how to deploy if effectively at scale. On 4 March, 12:05–13:15pm, Andrew Whitmore, Vice President of Sales at Motivair by Schneider Electric, will chair a panel discussion on tackling liquid cooling challenges in data centres, and will unpack the innovations, risks, and realities behind the technology. During the session, Andrew will be joined by Karl Harvard, Chief Commercial Officer at Nscale; Ian Francis, Global Design and Engineering SME at Digital Realty; and Petrina Steele, Business Development Senior Director at Equinix. How agentic AI transforms data centre services While AI is driving demand for data centre capacity, it is also transforming how these facilities are operated and maintained. On 5 March, 11:15–11:45am, Natasha Nelson, Chief Technology Officer at Schneider Electric’s Services business, will deliver a keynote exploring how agentic AI can transform data centre services at scale. During the session, Natasha will explore the transformative role of agentic AI and Augmented Operations in delivering highly skilled technical services – both remotely and on site – for electro-sensitive environments such as large-scale data centres. She will unpack how AI-powered decision-making and human expertise can create a new era of service excellence, where every intervention is smarter, faster, and more sustainable. Building resilient, end-to-end, AI-ready data centres At Stand D140, Schneider Electric will showcase its complete, end-to-end, AI-ready data centre portfolio, enabling scalable, resilient, and sustainable AI infrastructure. Our solutions cover: • Integrated power train — including Ringmaster AirSeT switchgear, Galaxy UPS, iLine busbar, and 800VDC sidecar • Hybrid cooling solutions — including Motivair by Schneider Electric’s liquid cooling and coolant distribution units (CDUs) • All-in-one modular infrastructure — AI POD (EcoStruxure Pod Data Centres) and Modular Data Centres • Lifecycle Services — to support compliant and optimised operations Our integrated power chain begins with the Ringmaster AirSet compact switchgear, directing high-voltage power and preventing overloads. The Galaxy UPS systems provide resilient backup, keeping AI servers running continuously. Inside facilities, the iLine busbar replaces cable complexity with overhead power bars, while the 800VDC sidecar delivers direct current to racks, avoiding conversion losses. Lifecycle services orchestrate this seamless system – from the Galaxy UPS enabling rapid repair to essential cabling controlling power safely. This de-risks expansion, ensures UK regulatory compliance, and delivers efficient, long-term AI infrastructure. Together, these solutions demonstrate a fully integrated, AI-ready architecture, showcased digitally and in physical format at the stand. Experts from Secure Power, Digital Energy, and Power Products divisions will also be present to explore how these technologies enable UK organisations to lead the AI race. Software and digital services Our DCIM software solutions and services safeguard AI operations through monitoring, optimisation, and digital modelling. These include: • EcoStruxure Data Centre Expert• AVEVA and ETAP Digital Twins• EcoStruxure Building Operation• Power Monitoring Expert The software pods demonstrate comprehensive digital solutions for monitoring, controlling, and optimising infrastructure. EcoStruxure Data Centre Expert provides real-time power and cooling visibility, while Aveva and ETAP Digital Twins enable simulation, design, and automation of critical systems. EcoStruxure Building Operation facilitates secure data exchange from third-party energy, HVAC, fire safety, and security systems. Power Monitoring Expert (PME) delivers electrical system insights for improved performance and sustainability, connecting smart devices across electrical systems and integrating with process controls for real-time monitoring. Join us at Stand D140 during Data Centre World in London to be part of the conversation on scaling sustainable, efficient, and resilient data centres together. For more from Schneider Electric, click here.

Daikin to showcase data centre solutions at DCW 2026

Daikin, a Japanese manufacturer of air conditioning and refrigeration systems, will participate in Data Centre World London 2026, where it will exhibit at Stand B140. The company says it will use the event to demonstrate how advanced cooling technologies and specialist expertise can support the sustainable growth of Europe’s rapidly expanding data centre sector. Building on its strong market track record, Daikin Applied will showcase solutions designed to meet the evolving needs of colocation providers and hyperscalers. Visitors to the stand will be able to engage directly with Daikin’s data centre specialists and explore how the company supports projects from early design and engineering through to commissioning, operation and long-term service. Data Centre World London is a key meeting point for operators and suppliers seeking practical, future-proof approaches to balancing performance, reliability, and sustainability. Daikin’s presence underscores its commitment to helping customers meet rising capacity demands, tighter energy efficiency targets, and increasingly complex data centre designs. A trusted partner for mission-critical environments At the show, Daikin will present an overview of its data centre portfolio, covering cooling solutions for a wide range of applications and design philosophies. A key feature of the stand will be a mock-up of the new Pro-W Slim fan array unit, designed to deliver high efficiency, scalability, and operational flexibility. The unit supports modular design concepts and is optimised for reliability, ease of maintenance, and precise airflow control. The company will also showcase its new coolant distribution unit (CDU), designed to support liquid-cooled architectures and high-density applications. Alongside these innovations, Daikin’s portfolio includes air- and water-cooled chillers, heat pumps, air handling units, CRAH systems, and integrated control solutions. Combined with specialist engineering support and lifecycle services, the company delivers tailored, end-to-end cooling solutions for data centres of all sizes and complexity levels. For more from Daikin, click here.

Power supply options for data centres

In this exclusive article for DCNN, Tania Arora and James Wyatt, Partners at Baker McKenzie (London), examine the evolving landscape of data centre power supply, highlighting why a tailored approach - blending grid connections, on-site generation, microgrids, and emerging technologies such as SMRs and battery energy storage - is increasingly essential for resilience, sustainability, and commercial optimisation: No universal solution Data centres presently require considerable energy resources, with projections indicating a marked increase in their consumption in the coming years. Securing a steady, sufficient, reliable, and scalable power supply is crucial for the financing, operational success, and long-term resilience of any data centre. A universal strategy does not exist for procuring power for data centres; each project requires a tailored approach. The market offers a wide range of power supply options and these are frequently combined to address the specific requirements of each project. The exact power procurement strategy for each project is determined by several factors, most notably the location of the data centre, local regulatory frameworks, its current and future operational needs, and the strategy of the developer (particularly considering other assets / other electricity supply arrangements they own). This article considers power procurement options available in the market and how these could be combined to achieve a successful power supply strategy. The key power supply options available at present include grid power, on-site or adjacent-site power generation, and microgrids (renewable or conventional), supported by backup generators, battery energy storage systems (BESS), and fuel cells. On-site or adjacent-site nuclear power is increasingly viewed as a panacea solution for data centre energy needs, although there are still considerable political, technological, and risk-allocation problems to solve. Data centres usually connect to public electricity grids, but most grids were not designed for their high load. Upgrades and expansions are often needed, which can be time-consuming and expensive. Sometimes, users must pay for these improvements, and further upgrades may be required if the data centre expands. Furthermore, securing a grid connection is rarely guaranteed; capacity reservations may be needed and are often subject to legal conditions. In some cases, installing on-site generation and microgrids can help address grid challenges. This could involve constructing solar and wind power plants (supported by BESS), gas-fired power stations, and/or combined heat and power (CHP) units adjacent to the data centre and supplying electricity directly without relying on the public grid. Furthermore, fuel cell and linear generator systems - as well as small modular reactors (SMRs) - are emerging as low-carbon, scalable power solutions for data centres. While the ongoing costs for self-generated energy are generally much lower, building such a dedicated energy infrastructure typically entails significantly higher upfront costs compared to connecting to the public grid. Furthermore, on-site projects are often constrained by space and planning restrictions, particularly in urban or suburban markets where demand is highest. Sustainable options Sustainability is a key consideration for a number of data centre market participants. Even if on-site wind or solar energy is economically viable for a project, these renewables alone cannot provide a stable base load due to their intermittency. To ensure base-load coverage, additional infrastructure such as energy storage systems, fuel cells, and conventional backup generators are required. SMRs and advanced nuclear technologies are emerging as promising solutions for the rising power needs of data centres. They offer reliable, consistent base-load power, load-following capability, scalable output, low carbon emissions, and a small physical footprint. They can operate independently of the grid or alongside renewables and are designed to be more cost-effective and quicker to deploy than traditional large-scale nuclear plants due to modular construction and established supply chains. SMRs are becoming a tangible reality for data centres. For example, the UK Government recently provided a considerable amount of support for SMRs for data centres through planning reforms, regulatory acceleration, funding, and explicit policy direction encouraging SMR–data‑centre colocation. However, SMRs face challenges: they are largely unproven and most jurisdictions still lack regulatory frameworks tailored to their unique characteristics. Key considerations for deploying SMRs include understanding local nuclear regulations, licensing and approval processes, decommissioning requirements, nuclear waste management, fuel supply security, and site suitability. Addressing these legal and regulatory issues is essential before SMRs can be widely adopted for data centres. BESS has become a key part of data centre power strategies, serving not only as resilience infrastructure but also helping to unlock commercial opportunities. It provides load shifting and peak shaving, thus reducing exposure to volatile wholesale prices and network charges by charging during low-cost or high-renewable periods and discharging power at peak demand. BESS also delivers instant backup power during outages and enables participation in grid services for additional revenue. Key issues include permitting and safety (especially for large-scale systems near nuclear or high-voltage facilities), complex grid connection agreements, and risk allocation where BESS is delivered via third-party energy-as-a-service contracts. Final considerations The near to mid-term future of data centre power lies in combined strategies. Every option in the combination presents its own distinct legal and commercial considerations. Consequently, as strategies become more complex, market participants should anticipate navigating a greater number of legal issues within the context of rapidly evolving regulatory frameworks.

Carrier to showcase AI cooling at DCW London 2026

Carrier, a manufacturer of HVAC, refrigeration, and fire and security equipment, will present its QuantumLeap portfolio at Data Centre World London 2026, taking place on 4–5 March. As a Platinum Sponsor, the company will host a panel discussion, a keynote session, and a solo presentation focused on cooling, building management, and lifecycle services for AI-driven data centres. Carrier, part of Carrier Global Corporation, will outline how increasing AI workloads are affecting thermal density and energy consumption across data centre environments. The company says the rapid growth of AI is creating pressure to manage higher heat loads while reducing overall energy use. Its QuantumLeap portfolio includes liquid cooling systems and high-efficiency chillers designed to support next-generation processors and higher rack densities. Integrated management and lifecycle focus Carrier will also highlight its building automation and data centre infrastructure management capabilities. By linking cooling, power, and IT systems through building automation systems and DCIM platforms, the company aims to give operators clearer operational oversight and improved energy control. In addition, Carrier will address lifecycle management, including waste heat reuse and grid participation, as part of broader sustainability strategies within AI data centres. Bertrand Rotagnon, Executive Director Commercial Business Line & Data Centres Europe, says, “Data centres can’t choose between growth, resilience, and energy performance; they need all three. "At DCW London 2026, we’re showcasing Carrier QuantumLeap solutions to help operators simplify decisions, improve efficiency, and move towards measurable energy contribution.” Carrier will be located at Stand D70. The company’s panel discussion takes place at 12:20 on Wednesday, 4 March, with a solo presentation at 15:55 on the same day and a keynote at 14:50 on Thursday, 5 March. For more from Carrier, click here.

Vertiv launches UK UPS trade-in programme

Vertiv, a global provider of critical digital infrastructure, has launched a UK-wide 'Power Swap' programme that allows organisations to replace older single-phase uninterruptible power supply (UPS) systems with newer models. The initiative includes collection, refurbishment, and recycling of legacy equipment to support compliance with Waste Electrical and Electronic Equipment (WEEE) regulations and reduce electronic waste. The programme applies to single-phase UPS units up to 5kVA from any manufacturer. Participants receive a discount code for a replacement unit and can arrange free, on-site collection of the old system. Recycling and upgrade process Vertiv manages the process from registration to recycling. Businesses submit details of an existing UPS through a partner, receive approval, purchase a replacement unit, and schedule collection of the retired equipment. Eligible replacements include the Vertiv Edge, Vertiv Liebert GXT5, and Vertiv Liebert GXE UPS ranges. Stuart McDougall, Channel Marketing Specialist, Northern Europe at Vertiv, says, “While many UPS vendors offer recycling or limited trade-in options, the Vertiv Power Swap programme is designed specifically for the UK channel and single-phase UPS market, uniquely combining discount incentives and an efficient trade-in process. "The Vertiv Power Swap program helps our partners to reduce their carbon footprint. With the launch of this new initiative, we're supporting UK businesses to upgrade their power protection whilst decreasing their environmental impact." Martin Ryder, Channel Sales Director, Northern Europe at Vertiv, adds, “This program strengthens our commitment to the channel by providing partners with an opportunity for enhanced margins, and customers with reliable, innovative UPS technology. "The Power Swap Program makes it easier than ever to transition to high-efficiency solutions like the Vertiv Edge, Vertiv Liebert GXT5, and Vertiv Liebert GXE, enabling greater uptime and cost savings in today's demanding IT environments.” The programme is available to UK customers and partners until the end of 2026. For more from Vertiv, click here.

Infosys, ExxonMobil collaborate on immersion cooling

Infosys, an Indian multinational provider of IT services, has expanded its collaboration with ExxonMobil, a US multinational oil and gas company, to develop and deploy ExxonMobil data centre immersion fluids for AI and high-performance computing environments. The initiative focuses on improving energy efficiency and supporting higher-density compute infrastructure. It builds on the companies’ existing relationship and targets the growing power and cooling requirements associated with AI workloads. Infosys will combine ExxonMobil’s immersion cooling fluids with its Topaz AI portfolio and Cobalt cloud services framework. The aim is to support the design and deployment of cooling systems across cloud and data centre environments. AI-driven optimisation and cloud integration According to Infosys, Topaz will be used to optimise cooling operations through real-time monitoring and predictive maintenance. Cobalt will provide cloud integration and deployment support for enterprise environments. The collaboration is expected to target hyperscalers, enterprises, and public sector organisations across sectors including financial services, telecoms, manufacturing, and energy. Ashiss Kumar Dash, EVP & Global Head - Services, Utilities, Resources, Energy and Enterprise Sustainability at Infosys, says, “Our expanded collaboration with ExxonMobil marks a pivotal step in scaling next-generation solutions. "By leveraging Infosys Topaz for real-time AI-driven optimisation and Infosys Cobalt for secure, scalable cloud deployment with ExxonMobil’s advanced energy expertise, we are addressing the urgent need for more efficient high-performance digital infrastructure. "This collaboration has the potential to deliver measurable outcomes by reducing data centre energy costs and carbon emissions while empowering enterprises to scale responsibly and meet the demands of an AI-powered future.” Alistair Westwood, Global Marketing Manager, ExxonMobil Product Solutions Company, adds, “This collaboration reflects our commitment to innovation by allowing us to apply our energy and thermal management expertise to the evolving landscape of digital infrastructure. "Infosys’ suite of AI and digital services is enabling us to pilot and adopt infrastructure that is smarter, efficient, and more resilient.”

ERIKS to showcase valves expertise at Data Centre World 2026

ERIKS UK & I, which has recently become a Rubix company, is exhibiting on Stand F6 at Data Centre World in London (4–5 March 2026), highlighting its experience in supporting designers and contractors working on increasingly complex cooling infrastructure. The company will showcase its valve expertise in data centre cooling applications, as AI-driven workloads place increasing demands on chilled water systems. The rapid adoption of AI workloads is reshaping data centre design, with higher rack densities and new cooling architectures placing greater strain on mechanical systems. Chilled water networks are now required to operate at higher flow rates, deliver tighter control, and perform reliably in more demanding operating conditions, increasing the importance of valve selection, consistency, and long-term performance. ERIKS supports data centre HVAC and chilled water applications with a broad portfolio of valve technologies covering the core functions commonly specified in cooling systems, including isolation, regulation, and protection. The offering spans a wide range of sizes, materials and actuation options, enabling engineers to standardise valve selection while accommodating differences in system design, environmental exposure, and future expansion plans. Meeting changing data centre design Jonny Herbert, Business Development Manager for Data Centres at ERIKS UK & I, says, “AI is accelerating the pace of change in data centre design, particularly on the cooling side. "While valves are often treated as commodity components, their role in controlling and protecting chilled water systems is critical. Our approach is shaped by years of experience in the data centre sector, prioritising robustness, material choice, and practical design.” ERIKS says it encourages earlier engagement on valve selection during the design and specification stages of data centre projects. Factors such as water quality, environmental exposure, coating requirements, and access for operation and maintenance can all influence long-term system reliability. Addressing these considerations upfront can help reduce the risk of premature failure, rework, or delays during installation. Jonny continues, “As data centre projects become larger, more complex, and more tightly integrated with digital infrastructure, Data Centre World has become an important meeting point for the engineers, consultants, and contractors shaping the next generation of facilities. Our presence reflects both the maturity of our involvement in the sector and the growing need for practical, experience-led support as cooling requirements continue to evolve.” Visit ERIKS UK & I on stand F6 at Data Centre World London (4–5 March 2026) to discuss valve requirements for data centre cooling and chilled water applications. Learn more, by visiting the company's website.

Trane to acquire LiquidStack

Trane Technologies, a US manufacturer of heating, ventilation, and air conditioning (HVAC) systems, has entered into a definitive agreement to acquire LiquidStack, a US-based provider of liquid cooling technology for data centres. LiquidStack, headquartered in Carrollton, Texas, develops direct-to-chip and immersion cooling systems for high-density and hyperscale computing environments. The company’s technology is used to support generative AI and other compute-intensive workloads. Trane Technologies made a minority investment in LiquidStack in 2023. The proposed acquisition expands its data centre thermal management portfolio, which includes chillers, heat rejection systems, controls, liquid distribution, and on-chip cooling. Expanding liquid cooling capabilities The deal includes LiquidStack’s manufacturing, engineering, and research and development operations in Texas and Hong Kong. Following completion, the business will operate within the Commercial HVAC unit of Trane Technologies’ Americas segment. Holly Paeper, President, Commercial HVAC Americas, Trane Technologies, says, “Rising chip-level power and heat densities, combined with increasingly variable workloads, are redefining thermal management requirements inside modern data centres. "Customers need integrated cooling solutions that scale from the central plant to the chip and can adapt as performance demands continue to evolve. "LiquidStack’s direct-to-chip and immersion cooling capabilities and talent, combined with Trane’s systems expertise and global footprint, strengthen our ability to deliver end-to-end, future-ready thermal management across the entire data centre ecosystem.” LiquidStack co-founder and CEO Joe Capes will join Trane Technologies in a leadership role and will continue to lead the business. Joe says, “LiquidStack has been on a mission to innovate and deliver the most advanced, powerful, and sustainable liquid cooling solutions. "Joining Trane Technologies enables us to accelerate that mission with the resources, scale, and global reach needed to power next-generation AI workloads in the most demanding compute environments." The transaction is expected to close in early 2026, subject to customary conditions. Financial terms have not been disclosed. Trane Technologies also recently announced the acquisition of Stellar Energy, which is expected to complete in the first quarter of 2026. For more from Trane Technologies, click here.

TES Power to deliver modular power for Spanish DC

TES Power, a provider of power distribution equipment and modular electrical rooms for data centres, has been selected to deliver 48 MW of modular power infrastructure for a new greenfield data centre development in Northern Spain, designed to support artificial intelligence workloads. The facility is intended for high-density compute environments, where power resilience, scalability, and deployment speed are key considerations. Growing demand from AI training and inference continues to place pressure on operators to deliver robust electrical infrastructure without compromising availability or reliability. Modular power skids for high-density AI environments As part of the project, TES Power will design and manufacture 25 fully integrated 2.5MW IT power skids. Each skid is a self-contained module incorporating cast resin transformers, LV switchgear, parallel UPS systems, end-of-life battery autonomy, CRAH-based cooling, and high-capacity busbar interconnections. The skids are designed to provide continuous power to critical IT loads, with automatic transfer from mains supply to battery and generator systems in the event of a supply disruption, a requirement increasingly associated with AI-driven data centre operations. Michael Beagan, Managing Director at TES Power, says, “AI is fundamentally changing the scale, speed, and resilience requirements of data centre power infrastructure. This project reflects exactly where the market is heading: larger, higher-density facilities that cannot tolerate risk or delay. "By delivering fully integrated, factory-tested power skids, we’re helping our client accelerate deployment while maintaining the absolute reliability that AI workloads demand.” The project uses off-site manufacture to reduce programme risk and enable parallel delivery, allowing electrical systems to be progressed while civil and building works continue on-site. Each skid will undergo full Factory Acceptance Testing prior to shipment, reducing commissioning risk and limiting on-site installation time. Building Information Modelling is being used to digitally coordinate each skid with wider site services, supporting installation sequencing, clash detection, and longer-term operational planning. TES Power’s scope also includes project management, site services, and final commissioning.

Direct-to-chip liquid cooling market to reach $7.9bn by 2033

Rising computational intensity has placed unprecedented pressure on traditional air-based cooling systems. High-performance computing (HPC), artificial intelligence (AI), cloud data centres, and advanced semiconductor architectures generate dense heat loads that are increasingly difficult to manage using conventional thermal management approaches. According to Research Intelo, a global market research and consulting firm, the global direct-to-chip liquid cooling market was valued at $1.3 billion (£951 million) in 2024 and is projected to reach $7.9 billion (£5.7 billion) by 2033, expanding at a CAGR of 22.3%. This strong growth trajectory underscores the growing reliance on liquid-based cooling technologies to support next-generation digital infrastructure. Direct-to-chip liquid cooling has emerged as a practical and scalable response to these challenges, offering targeted heat removal directly from processors and other high-power components. By reducing thermal resistance and improving heat transfer efficiency, this approach supports higher rack densities while aligning with broader energy efficiency and sustainability objectives. What exactly is direct-to-chip liquid cooling? Direct-to-chip liquid cooling is a thermal management method in which a liquid coolant flows through cold plates mounted directly onto heat-generating components such as CPUs, GPUs, and accelerators. Heat is absorbed at the source and transported away through a closed-loop liquid system, minimising reliance on air circulation. Compared to immersion cooling, which involves submerging entire systems in dielectric fluids, direct-to-chip solutions integrate more easily with existing data centre architectures. This balance between high cooling efficiency and operational compatibility has positioned the technology as a preferred option for gradual infrastructure upgrades and hybrid cooling deployments. Which factors are driving market growth? 1. Technological innovation and automation As processing power and server densities continue to rise, traditional air-cooling solutions are approaching their practical limits, increasing the risk of thermal throttling and hardware degradation. Direct-to-chip liquid cooling technologies provide a highly efficient alternative by enabling precise and consistent heat removal from critical components. Ongoing innovation in cold plate design, advanced coolants, and system integration is further enhancing performance and reliability. The incorporation of smart sensors, real-time monitoring tools, and automated flow controls enables predictive maintenance and dynamic thermal optimisation. These advancements are making direct-to-chip liquid cooling more scalable and accessible across a wide range of computing environments, from hyperscale data centres to edge deployments. 2. Shifts in end-user accelerating market expansion The rapid expansion of data-intensive applications, including AI, machine learning, blockchain, and the Internet of Things (IoT), has led to unprecedented heat generation within servers and computing clusters. Enterprises and data centre operators face increasing pressure to maintain high performance and uptime while controlling operational costs and energy consumption. Direct-to-chip liquid cooling addresses these demands by delivering superior thermal efficiency and reducing dependence on energy-intensive air conditioning systems. The ability to support higher rack densities is particularly valuable in urban data centres and edge locations where space and power constraints are significant. As organisations prioritise sustainability and long-term infrastructure resilience, adoption of liquid cooling technologies is expected to expand across multiple industry verticals. 3. Regulatory support and government incentives Regulatory frameworks aimed at reducing energy consumption and greenhouse gas emissions in data centres are creating favourable conditions for advanced cooling technologies. In regions such as Europe and North America, government incentives - including tax benefits, grants, and energy efficiency programs - are encouraging the adoption of low-impact thermal management solutions. In parallel, international standards for green data centre operations are pushing organisations to modernise their infrastructure and improve environmental performance. These regulatory and policy-driven factors are fostering innovation, reducing adoption barriers, and supporting sustained market growth. What challenges are limiting wider adoption? Despite strong growth prospects, the market faces several challenges that could impact adoption rates. Regulatory uncertainty related to safety standards, environmental compliance, and fluid handling requirements can complicate deployment decisions. Volatility in raw material prices, particularly for copper and specialised cooling fluids, may also influence production costs and pricing strategies. Additionally, standardisation gaps and interoperability issues can pose challenges in complex or legacy IT environments. Addressing these constraints will require continued collaboration among technology providers, regulators, and end-users to establish clear guidelines, improve compatibility, and build confidence in long-term system reliability. Which technologies are shaping product innovation? Manufacturers are continually refining cold plate designs to improve heat transfer efficiency and compatibility with next-generation processors. Innovations such as microchannel architectures, optimised flow paths, and advanced alloys enable higher thermal performance while minimising pressure drop and energy consumption. Customisation tailored to specific processor architectures and workload requirements has become increasingly common. This flexibility supports diverse applications across AI, HPC, cloud computing, and enterprise data centres, further strengthening the market’s value proposition. What regional trends are emerging? • North America dominates the global market, accounting for over 38% of total market share in 2024. This leadership is driven by a mature data centre ecosystem, advanced IT infrastructure, and early adoption of innovative cooling technologies. The strong presence of hyperscale data centre operators and cloud service providers, particularly in the US, has accelerated deployment across the region. • Asia Pacific is projected to register the fastest growth, with a CAGR of 27.1% from 2025 to 2033. Rapid digital transformation, expanding cloud infrastructure, and increasing investments in hyperscale and edge data centres are fuelling demand. Countries such as China, India, Japan, and Singapore are witnessing rising adoption of AI and HPC across sectors including fintech, healthcare, and smart cities, further driving the need for advanced cooling solutions. • Latin America, the Middle East, and Africa are experiencing gradual adoption of direct-to-chip liquid cooling technologies. While infrastructural limitations, budget constraints, and skills gaps have slowed deployment, growing awareness of long-term cost savings and sustainability benefits is steadily improving market outlook in these regions. What does the competitive landscape look like? The market features a combination of established thermal management companies and specialised liquid cooling solution providers. Competition is primarily based on cooling efficiency, system reliability, ease of integration, and total cost of ownership. Strategic partnerships between hardware manufacturers, data centre operators, and cooling technology providers are becoming increasingly common. Continuous investment in research and development remains critical, as cooling requirements evolve alongside processor design and workload intensity. What is the future outlook for the direct-to-chip liquid cooling market? The transition towards high-density computing shows no signs of slowing. Market forecasts indicate strong expansion, with the direct-to-chip liquid cooling market expected to grow from $1.3 billion (£951 million) in 2024 to $7.9 billion (£5.7 billion) by 2033, reflecting sustained demand across data centre, enterprise, and research environments. As processors become more powerful and energy efficiency expectations rise, direct-to-chip liquid cooling is expected to shift from selective adoption to broader implementation. Continued standardisation, declining component costs, and increased operational familiarity are likely to accelerate this transition. Conclusion: Is direct-to-chip liquid cooling becoming a standard rather than an option? Direct-to-chip liquid cooling addresses some of the most critical challenges facing modern computing infrastructure. By enabling efficient heat management, supporting high-performance workloads, and aligning with sustainability and energy efficiency goals, the technology is redefining thermal management strategies. As digital workloads intensify and infrastructure demands evolve, the market’s trajectory raises a defining question: Will direct-to-chip liquid cooling soon be regarded as a baseline requirement for advanced computing environments rather than a specialised enhancement?